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article imageCyprus to sell about 400 million euros of gold reserves

By Andrew Moran     Apr 10, 2013 in Politics
Nicosia - The island nation of Cyprus has confirmed that it will sell 400 million euros of gold reserves to finance its part of the bailout, according to an assessment released by the European Commission on Wednesday.
Cyprus agreed to a bailout of 10 billion euros ($13 billion) from the International Monetary Fund (IMF) and European partners. In order to fund its share of the bailout, the government is imposing a number of measures, including cutting its budget, raising taxes, shrinking its outsized finance sector, privatizing state assets and implementing economic reforms.
Between the second quarter of 2013 and the first quarter of 2016, Cyprus will need 23 billion euros: the euro zone bailout fund will consist of 9 billion euros, the IMF will throw in one billion euros and Cyprus will have to generate 13 billion euros.
It has been reported by Reuters that Cyprus will now sell 400 million euros worth of its gold reserves to raise enough capital for its share of the bailout, according to draft documents obtained by the news organization.
The gold market has yet to react to the news. At the time of this writing, gold is trading at $1,568.50, down $18.20, or just over one percent.
More to come...
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